The US Department of Energy (DOE) has authorized Freeport LNG Expansion LP and FLNG Liquefaction LLC (Freeport) to export additional volumes of domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the US from the Freeport LNG Terminal in Quintana Island, Texas.

Freeport previously received approval to export 1.4 billion cubic feet of natural gas a day (Bcf/d) of LNG from this facility to non-FTA countries on May 17. The Freeport Expansion application was next in the order of precedence after the Energy Department authorized Dominion’s proposed Cove Point facility in September. Subject to environmental review and final regulatory approval, the facility is authorized to export an additional 0.4 Bcf/d, for a total rate of up to 1.8 Bcf/d, for a period of 20 years.

The development of US natural gas resources is having a transformative impact on the US energy landscape, helping to improve our energy security while spurring economic development and job creation around the country. This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a total natural gas production rate of 70.3 Bcf/d in 2013.

Federal law generally requires approval of natural gas exports to countries that have an FTA with the US. For countries that do not have an FTA with the US, the Natural Gas Act directs the Department of Energy to grant export authorizations unless the Department finds that the proposed exports “will not be consistent with the public interest.

The Energy Department conducted an extensive, careful review of the application to export LNG from the Freeport LNG Terminal. Among other factors, the Department considered the economic, energy security, and environmental impacts - as well as public comments for and against the application and nearly 200,000 public comments related to the associated analysis of the cumulative impacts of increased LNG exports – and determined that additional volume of exports from the terminal at a rate of up to 0.4 Bcf/d for a period of 20 years was not inconsistent with the public interest.

“The DOE’s approval order for Freeport LNG Expansion and FLNG Liquefaction is welcome news, and we now strongly urge the DOE to move forward more rapidly with the remaining non-FTA applications still pending with their office,” said Bill Cooper, president of the Center for Liquefied Natural Gas. “Thanks to an abundance of natural gas, the US is in the unique position of being able to export some to our trading partners abroad, which will bring wealth into the country, create jobs across the value chain, and benefit our domestic industries and consumers. With widespread support for LNG exports from lawmakers, economists and energy experts, it’s time for the DOE to help the US realize this economic opportunity and act quickly on the remaining applications.” Source: ﻿